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The Economics of Central Banking
This book offers a comprehensive analysis of central banks, and aims to demystify them for the general public, which is the only way to have a rational debate about them and ultimately to make them truly accountable. The book originates from the author’s graduate lectures on Central Banking at the University of Frankfurt J.W. Goethe. It contains an overview of all the key questions surrounding central banks and their role in the economy. It leads the reader from the more established concepts (including monetary theory and historical experience), necessary to have a good grasp of modern central banking, to the more open and problematic questions, which are being debated within academic and financial market circles. This structure enables readers without specific knowledge of central banks or monetary economics to understand the current challenges. The book has three defining characteristics, which set it apart from competing first, it is pitched at the general public and uses simple and entertaining language. Second, it is rooted in, and makes frequent reference to, recent academic research, based on content for a graduate level course. Third, the author thinks 'out of the box' in order to describe the possible evolution of central banks (including the prospect of their disappearance), and not only the status quo.
- GenresEconomics
144 pages, Hardcover
Published April 10, 2018
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Displaying 1 - 2 of 2 reviews
July 31, 2020
As policy makers double down on their destruction of Western monetary systems it seemed a good time to read one of the better reviews written by an academic who has also been an experienced practitioner.
Written for the interested non-economist in language that minimises technical terms or carefully explains them, the book is a clear-eyed review of our current understanding of how money behaves (and hence also debt) and it’s effects on the real economy, and how central banks set policy in their attempts to control (or not!) its supply and its cost in order to optimise outcomes.
The book starts with a review of the 3 central components of the mainstream model - which central banks have merely fiddled with since the financial crisis of a decade ago - and then goes on to discuss many of the potential problems (the “zero bound” to interest rates; boom & bust cycles in credit and asset prices; the absence of a model for inflationary expectations; different exchange rate regimes; and, of course, the exogenous and unstable behaviour of the ratio of inside money to outside money (I would have liked to see more on the latter, and more skepticism too!)).
Final chapters look at whether paper money has a future, and whether and in what form central banks might continue to exist.
Written for the interested non-economist in language that minimises technical terms or carefully explains them, the book is a clear-eyed review of our current understanding of how money behaves (and hence also debt) and it’s effects on the real economy, and how central banks set policy in their attempts to control (or not!) its supply and its cost in order to optimise outcomes.
The book starts with a review of the 3 central components of the mainstream model - which central banks have merely fiddled with since the financial crisis of a decade ago - and then goes on to discuss many of the potential problems (the “zero bound” to interest rates; boom & bust cycles in credit and asset prices; the absence of a model for inflationary expectations; different exchange rate regimes; and, of course, the exogenous and unstable behaviour of the ratio of inside money to outside money (I would have liked to see more on the latter, and more skepticism too!)).
Final chapters look at whether paper money has a future, and whether and in what form central banks might continue to exist.
January 21, 2022
I can’t finish this trash. It’s inflated language and failure to get to the point are excruciating. It’s attempt to appeal to non-academics is a failure. I’m not simply disappointed but angry about how bad this is.
Understanding central banking and the US Federal Reserve were my goals. There are few books I’ve found to explain simply and rationally. However, if you’re looking for something then I’d recommend the Fed’s website and looking over the history of rate changes and press releases explaining them.
Understanding central banking and the US Federal Reserve were my goals. There are few books I’ve found to explain simply and rationally. However, if you’re looking for something then I’d recommend the Fed’s website and looking over the history of rate changes and press releases explaining them.
Displaying 1 - 2 of 2 reviews